Although there were too few transactions to trend, negotiated cash fed cattle prices on Thursday continued steady to $1 higher than the week’s higher prices of $2 higher on a live basis at $107/cwt., except for in the Texas Panhandle, where prices are $2-$3 higher at $107-$108. Dressed trade is $2 higher at $167.
Live Cattle futures closed narrowly mixed, from an average of 26¢ lower to an average of 18¢ higher.
Feeder Cattle futures closed an average of 51¢ lower, except for an average of 17¢ higher in the back three contracts.
Choice boxed beef cutout value was $1.24 higher Thursday afternoon at $218.98/cwt. Select was 8¢ higher at $207.62.
The average dressed steer weight for the week ending Sept. 19 was 919 lbs., according to USDA’s Actual Slaughter Under Federal Inspection report. That was 1 lb. lighter than the previous week, but 23 lbs. heavier than the previous year. The actual dressed heifer weight of 836 lbs. was the same as a week earlier, but 13 lbs. heaver than the same week last year.
Actual total fed cattle slaughter of 513,153 was 7,154 head fewer than the prior year. Total cattle slaughter of 648,427 head was 12,430 head fewer (-1.88%). Beef production for the week of 543.3 million lbs. was just 600,000 lbs. less (-0.11%) than a year earlier.
Net U.S. beef export sales the week ending Sept. 24 totaled 24,700 metric tons for 2020, according to the U.S. Export Sales report from USDA’s Foreign Agricultural Service. That was 37% more than the previous week and 67% more than the prior 4-week average. Increases were primarily for Japan, Hong Kong, and Mexico.
Corn futures closed mostly 2¢ to 3¢ higher through Mar ’22 and then fractionally lower to 1¢ higher.
Soybean futures closed unchanged to fractionally mixed through Jan ’22 and then mostly 3¢ to 5¢ lower.
Major U.S. financial indices mostly edged higher Thursday amid mixed economic news and shadowed by the inability of lawmakers to come to terms on another round of economic stimulus.
Weekly initial jobless claims for the week ending Sept 26 decreased by 36,000 from the previous week to 837,000, according to the U.S. Department of Labor. That was more positive than traders expected.
On the other hand, although economic activity in the manufacturing sector grew for the fifth consecutive month, it declined month to month, according to the Institute for Supply Management®(ISM) manufacturing report on business®. The September Purchasing Managers Index (PMI®) registered 55.4%, down 0.6% from the August reading of 56%.
“After the coronavirus (COVID-19) pandemic brought manufacturing activity to historic lows, the sector continued its recovery in September. Survey Committee members reported that their companies and suppliers continue to operate in reconfigured factories and are becoming more proficient at maintaining output,” says Timothy R. Fiore, Chair of the ISM Manufacturing Business Survey Committee.
The Dow Jones Industrial Average closed 35 points higher. The S&P 500 closed 17 points higher. The NASDAQ closed 159 points higher.
Restaurant traffic in August was 9% less than the previous year, while revenue was 10% less, according to the NPD Group (NPD). That was with slightly fewer than 25% restaurants nationwide operating with COVID-19 restrictions for on-premises dining.
“As the summer progressed and mandated restrictions were lifted, an increasing number of consumers became more comfortable dining out based on the safety protocols restaurants put in place,” says David Portalatin, NPD food industry advisor “After months of staying at home and cooking their own meals or ordering in, they were ready for the restaurant experience again.”
Since April, at the height of the stay-at-home and mandated dine-in closures, several areas of the restaurant industry improved or returned closer to pre-pandemic levels over the last months, according to NPD’s CREST® foodservice market research.
On-premises visits improved every month since April as the mandated dine-in closures lifted and restaurants were able to offer varying levels of dine-in capacity.
Digital orders accounted for more than 20% of all restaurant occasions in April, but declined to 17% of occasions in August.
A buy-one-get-one-free or other type of deal, was utilized in 30% of occasions in April but slowed every month since, and represented 27% of occasions in August.
In August, adult-only parties represented 63% of all restaurant occasions and parties with kids (families in most cases) represented 37%. In April, adult-only parties represented 59% of visit share and parties with kids 41% share.